There are no major expiry periods to consider on the day, with the full list shown below.
The dollar was able to recover from the losses incurred earlier this week, following the release of weak US CPI and PPI reports. This shift is largely due to the continued focus on inflation concerns, as well as the Federal Reserve’s more hawkish outlook, as the US-Iran conflict resurfaces.
However, yields eased slightly today but are still high since the beginning of the month. As such, this continues to support the overall backdrop in pushing the dollar higher against the rest of the major currencies – especially the USD/JPY. However, intervention risks are still the name of the game for the mentioned currency pair as officials in Tokyo are keeping a close eye on things.
As for the broader dollar sentiment, much of that now depends on further developments between the US and Iran as well as the overall risk-on mood in the markets. The latter returns to focus amid the tech sell-off we are witnessing, after a mild mid-week break.
Semiconductors and chipmakers are being punished severely again, leading to renewed contraction at the end of the week. Things are looking tough, and if that continues, safety flows could keep the dollar supported before we reach the weekend. So, this is just something to be wary of even if the majors are not very sensitive to risk developments during most of the year. Instead, the main driver and big picture of the major currencies are those linked to the price market. However, it does not rule out the possibility of traders reacting to high-risk selling, especially in a more volatile and worrying risk environment.
For more information about how this data is used, you can refer to this post here.
